TAX 9873 Lecture 34: 34
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Irc 414(c) controlled group definition irc 1563. Brother sister entities any entity that is controlled more than 80% by common shareholders is a controlled group. Ex. if you own 20%, you fail also need to know if they"re in an affiliated group. Determine a list of all qualified plans in the control group. Include all employees in the controlled group during the testing year. In excess of ,000 (adjusted for cola), and. Compensation is 415 compensation why would you want more highly paid in a qualified plan for testing purposes, you can discriminate against them you can give zero benefit to them and have zero penalty. Ex. if you benefit no highly-paid employees, you pass! [look @automatic satisfaction below: minimum participation 401(a)(26) db plan. The requirement is automatically satisfied if the plan covers lesser of : Or greater of (40% of all employees, or 2 employees) Other types of automatic satisfaction, the exceptions to the 401(a)(26):
